RadNet breaks; Ford firm with numbers; Affinion tweaks deal; Skilled Healthcare sets spread

By Sara Rosenberg

New York, April 1 - RadNet Inc.'s credit facility allocated and freed up for trading during Thursday's market hours, with the term loan B quoted a little bit higher than the original issue discount price at which it was sold during syndication.

Also in trading, Ford Motor Co.'s term loans were steady to stronger following the release of positive monthly sales results.

Moving to the primary market, Affinion Group Inc. made some changes to its credit documents related to maturities and a refinancing accordion, and Skilled Healthcare Group Inc. firmed pricing on its in-market term loan at the wide end of initial guidance.

In more primary happenings, Ozburn-Hessey Holding Co. LLC's credit facility has been met with strong demand, resulting in oversubscription, and Reynolds and Reynolds Co. and Lamar Media Corp. are getting ready to launch new deals.

RadNet frees to trade

RadNet's credit facility hit the secondary market during the session, with the $285 million six-year term loan B quoted by one trader at 99½ bid, 99 7/8 offered, and by a second trader at 99¼ bid, 99¾ offered.

Pricing on the term loan B is Libor plus 375 basis points with a 2% Libor floor, and it was sold at an original issue discount of 99. The loan includes 101 soft call protection for one year.

During syndication, the term loan B was upsized from $275 million, pricing firmed at the tight end of the Libor plus 375 bps to 400 bps talk, and the call protection was added.

As a result of the term loan B upsizing, the company's bond offering was downsized to $200 million from $210 million. The 10 3/8% eight-year senior notes priced on Wednesday at 98.68 to yield 10 5/8%.

A source explained that the choice was made to go with more bank debt and less bonds, since the term loan B was so oversubscribed and the bank debt was cheaper.

RadNet getting revolver, too

In addition to the term loan B, RadNet's $385 million credit facility (Ba3/B+) also includes a $100 million five-year revolver that priced in line with original talk at Libor plus 375 bps with a 2% Libor floor and an upfront fee of two points.

Barclays Capital, GE Capital Markets, Deutsche Bank, RBC Capital Markets and Jefferies are the lead banks on the deal.

Proceeds from the credit facility and the notes will be used to refinance the company's existing revolver due 2011, term loan B due 2012 and second-lien loan due 2013. The new revolver is expected to be undrawn at close.

The refinancing transaction would extend the maturity of the company's debt, increase the size of its revolver by about $45 million and further enhance liquidity by adding about $25 million of cash to its balance sheet.

RadNet, a Los Angeles-based provider of diagnostic imaging services, expects to close on the refinancing early this month.

Ford flat to better

Ford's term loans were unchanged to higher on the day, depending on which trader was asked, as the company released sales numbers for the month of March that showed a strong improvement from the prior year.

The Dearborn, Mich.-based automotive company's term loan B-1 was quoted by one trader at 96¾ bid, 97¼ offered, in line with previous levels, and by a second trader at 96 7/8 bid, 97 3/8 offered, up three eighths of a point.

And, the term loan B-2 was quoted by the first trader unchanged at 95¾ bid, 96¾ offered, and by the second trader at 96¾ bid, 97¾ offered, up a point on the day.

For the month of March, Ford's total sales were 183,783, up 39.8% from 131,465 in March 2009, car sales for the month were 71,015, up 52.8% from 46,467, and truck sales for the month were 59,623, up 30.1% from 45,813 in the previous year.

Affinion revises facility

Over in new deal happenings, Affinion Group came out with revisions to its credit facility document, adding a springing maturity and redefining the refinancing accordion, according to a market source.

Under the new spring maturity provision, the proposed bank debt would mature 90 days prior to the company's senior subordinated notes due in 2015, if those notes are not refinanced, the source said.

As for the $455 million refinancing accordion feature, that has been changed so that it could only be used to refinance the company's senior secured notes, whereas before, it was permitted for any refinancing, the source explained.

Bank of America and Credit Suisse are the lead banks on the $1 billion credit facility (Ba2) that will be used to refinance existing debt and for general corporate purposes, including acquisitions.

Affinion facility details

As was previously reported, Affinion Group's credit facility consists of a $125 million five-year revolver and an $875 million 61/2-year term loan B.

Price talk on the two tranches is Libor plus 350 bps.

The term loan B is also being guided with a 1.5% to 1.75% Libor floor and an original issue discount in the 98½ to 99 area.

Pricing on the facility is expected to firm up sometime next week as commitments are due from lenders on April 6, the source added.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

Skilled Healthcare firms pricing

Skilled Healthcare Group set pricing on its $330 million term loan at Libor plus 375 bps, the high end of initial talk of Libor plus 350 bps to 375 bps, and left the 1.75% Libor floor and original issue discount of 99 intact, according to a market source.

Credit Suisse, Barclays, JPMorgan and Bank of America are the lead banks on the $430 million deal (Ba3/BB-), which also includes a $100 million revolver.

Proceeds will be used to refinance the company's existing senior secured credit facility that consists of a $260 million term loan and a $135 million revolver.

Secured leverage is 3.1 times and total leverage is 4.2 times.

Skilled Healthcare is a Foothill Ranch, Calif.-based health care services company.

Ozburn-Hessey well met

Ozburn-Hessey's credit facility is oversubscribed, and the current expectation is that the deal will wrap at initial terms, according to a market source.

The $385 million credit facility consists of a $35 million revolver (Ba3/B) talked at Libor plus 525 bps, a $275 million first-lien term loan (Ba3/B) talked at Libor plus 550 bps with a 2% Libor floor and an original issue discount of 98, and a $75 million second-lien term loan (B3/CCC+) talked at Libor plus 850 bps with a 2% Libor floor and an original issue discount of 97.

The first-lien term loan carries 101 soft call protection for one year, and the second-lien term loan carries call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America is the lead bank on the deal that will be used to refinance existing debt.

Ozburn-Hessey is a Brentwood, Tenn.-based third party logistics provider.

Reynolds readies launch

Reynolds and Reynolds has scheduled a bank meeting on Tuesday to launch a proposed $1.895 billion credit facility that will be used to refinance existing debt, according to sources.

Deutsche Bank, Bank of America and Credit Suisse are the lead banks on the deal, with Deutsche the left lead.

The facility consists of a $75 million revolver and a $1.82 billion term loan, sources said, adding that price talk is not yet available.

Reynolds and Reynolds is a Dayton, Ohio-based dealer services company.

Lamar also planning refi

Lamar Media is also set to come to a market with a refinancing deal, and it, too, is set to launch with a bank meeting on Tuesday, according to a market source.

The $1.125 billion credit facility consists of a $250 million revolver, a $300 million term loan A and a $575 million term loan B, the source said.

JPMorgan, Wells Fargo and SunTrust are the lead banks on the deal.

Lamar is a Baton Rouge, La.-based provider of outdoor advertising services.

Shearer's Foods closes

In other news, Shearer's Foods Inc. completed its acquisition of Snack Alliance Inc., a contract pack and private label snack producer, according to a news release.

To help fund the transaction, Shearer's Foods got a $139 million credit facility (Ba3/B), consisting of a $20 million revolver and a $119 million term loan, with both tranches priced at Libor plus 475 bps with a 2% Libor floor, and both were sold at an original issue discount of 98.

Jefferies and BMO acted as the lead banks on the deal, with Jefferies the left lead.

Shearer's, which is majority owned by Mistral Equity Partners, is a Brewster, Ohio-based producer and distributor of contract pack and private label seasoned snack foods.

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